Premier Li Keqiang has ordered a restructuring of China's industries to achieve a balanced and coordinated growth that will not harm the environment.

The industrial restructuring, as laid out during the annual Two sessions, calls for a cut down on harmful industrial emissions, more efficient use of energy resources, and stricter control of the country's energy consumption.

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This will involve a gradual cut down on traditional energy sources like coal, and the development of clean-energy sources such as solar, nuclear power, hydro, and wind power sources.

Li urged the Cabinet on Friday to stop worrying that China's economy might hurt from the industrial restructuring.

Rather, he said they should think of the economic growth potential that comes from developing new industries that yield cleaner energy.

Li's announcement was a welcome move amid forecasts that China will be experiencing another round of heavy smog this week.

As early as Monday morning the pollution index already registered deteriorating levels of air quality.

Based on the reform framework reported by Premier Li during the Two Sessions, government will trim energy consumption by 3.9 percent and cut down emissions by 2 percent.

The plan involves the compulsory renovation of the country's coal power plants, outright shutdown of thousands of small coal furnaces, and elimination of high-emission vehicles.

It also calls for a cut down in steel production by as much as 27 million tons, and cement production by 42 million tons.

Higher penalties will be imposed on polluters and agencies of government that fail to monitor and curb pollution problems, Li said.

He asked lawmakers to push for the development of the service industry, which provides jobs but does not consume too much energy.

"We will declare war against pollution and fight it with the same determination we battled poverty," Li had promised when he presented the Government Work Report on March 5.